Can anyone give me some pointers on picking a title
company for wholesaling.
Howdy Cartercorp4:
Most sellers will pay for the title policy and so they want to chose the agent or let their Realtor chose their friend. You may want to use their company to save on the costs of the title policy which can be a grand or better. You can also use a different agent at another location within the same company to handle the closing to your buyer. Just let them know that you want to pass the policy to your buyer at the sellers expense and only pay for one policy.
Most companies work with wholesalers and are familiar with what needs to be done. I would look for one that may have less expensive closing fees and legal fees. You may be able to save $300 or so by choosing a lower cost agency.
LOL
Download this survey of title companies http://www.consumersunion.org/pdf/Title%20Survey.pdf
Steve Scheffman issue this article and it is one of the better ones one this subject and it is ok to post his article.
Ask for recommendations
First, ask friends and family if they have any recommendations. Trust plays a large part since the company you choose will be handling large sums of money for the escrow account and will need to keep both parties informed as to the progress of the sale. A title company should return calls promptly, inform all parties when paper work will need to be signed and explain details of the sale in terms that the buyers and sellers will understand. The title company must also be as confidential as possible. Most of all, they must work in a courteous and professional manner.
The Company’s History
Next, what is this title company’s reputation within the Real Estate community? Are they highly respected and known for their excellent knowledge. Buyers and sellers both want easy and smooth escrows. If a title company has the experience in closing a large number of escrows with relatively low complaints, this is the company to choose. A competent title and escrow company is the backbone to stress free escrow.
Title companies also research the title making sure there are not any liens against the property. When any problems arise in checking on the background of a title, it is their responsibility to clear these hurdles with both parties so the property will be sold without future problems. The ability to solve any problems with a title is very important to both the buyer and seller and a good title and escrow company will have the knowledge and background to solve these questions. Communication is vital here and a title company must constantly be in contact with the buyers and sellers.
Location Location Location
Another point to consider is their location. When a title and escrow company calls and needs a signature or a deposit, it is more time efficient (and helps the escrow process go faster) if the office is centrally located. Many offices will go the extra step and hand deliver documents if needed quicker. There are many forms to sign and many times both parties will be called in to verify identity and location will play a large part if a party wishes to have a fast escrow. Title and Escrow Company Fees Finally, check into a title and escrow company’s fees. Are they competitive? Closing costs can be scary to a first time homebuyer. Be sure they give a close estimate, but not too low. A person would rather pay lower than the estimate than higher. Closing costs reflect the fees the title company charges for processing the paper work, title, money transfers and more. Companies charge different rates for different services, so it is a good idea to compare. It is also wise to check that the fees charged by your lender and properly reflected on the closing statement. Your Escrow officer is prepared to discuss these fees with the lender if any question should arise.
Buyers and sellers want their experience to be one that they will be happy with. A title and escrow company plays a large part in making this transaction very easy for both parties as long as they are knowledgeable, professional and hold each transaction with the highest of confidence.
For more information, contact Steve Scheffman, Fidelity National Title